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A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2018 · Q171 Mark

What is an aim of a transfer payment?

AIt allows the government to alter the final distribution of income.
BIt provides a ceiling for levels of income across the economy.
CIt removes the need for state subsidies.
DIt rewards the activity of a factor of production.

✓ Correct answer

A: It allows the government to alter the final distribution of income.

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About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2018 Paper 1 Variant 2, question 17.

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